Case Studies: Software Developers

Curious about research and development tax credits for software developers? We’ve worked with many software engineers, computer scientists and system programmers to claim R&D tax incentives. Take a look at the following software developer case study examples to learn more.

Software developers and technology firms are at the forefront of innovation, often incurring significant costs that qualify for federal and state tax relief. Engineered Tax Services helps these companies capture the Research and Development (R&D) tax credit by identifying qualifying activities such as developing custom algorithms, building proprietary frameworks, and designing scalable cloud architectures. Because software development is inherently iterative and involves technical uncertainty, ETS specialists can frequently uncover substantial qualified research expenditures (QREs) related to employee wages, cloud hosting fees, and third-party contractor costs. This engineering-based approach converts technical development efforts into immediate cash flow, providing the capital needed to hire top engineering talent and accelerate product roadmaps.

Software Developer Case Studies

The complexity of modern software—ranging from AI-driven analytics to microservices architectures—offers extensive opportunities for tax recovery. Engineered Tax Services has successfully guided numerous firms through the rigorous “four-part test” to ensure their technical documentation meets IRS standards for innovation and experimentation. For example, ETS assisted a California-based software developer in uncovering over $4.5 million in QREs, resulting in a three-year tax savings of $690,751. Additionally, Engineered Tax Services helps firms identify savings for internal-use software and emerging technologies like machine learning and blockchain. These results illustrate how ETS delivers the technical precision and defensible documentation required to maximize Net Present Value and transform R&D departments into significant profit centers.